In a ruling that could have broad effects on the so-called gig economy powered by workers such as Uber drivers, a San Francisco federal judge has found such workers aren’t entitled to protections guaranteed to employees under California law.

And the judge suggested that California lawmakers may want to address the “stark dichotomy” that sees employees given certain legal protections that independent contractors don’t rec

The Feb. 8 decision arose from a lawsuit by a former member of the gig economy, a driver for meal-delivery service GrubHub. Raef Lawson claimed GrubHub improperly classified him as an independent contractor and broke state laws by not paying his expenses, giving him less than minimum wage, and failing to pay him overtime. He drove for the Chicago-based firm for four months.

“Grubhub’s lack of all necessary control over Mr. Lawson’s work, including how he performed deliveries and even whether or for how long, along with other factors persuade the Court that the contractor classification was appropriate for Mr. Lawson during his brief tenure with Grubhub,” U.S. District Court Judge Jacqueline Scott Corley wrote in her judgment.

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Corley concluded her ruling with a suggestion for lawmakers.

“Under California law whether an individual performing services for another is an employee or an independent contractor is an all-or-nothing proposition,” Corley wrote.

“If Mr. Lawson is an employee, he has rights to minimum wage, overtime, expense reimbursement and workers compensation benefits. If he is not, he gets none.

“With the advent of the gig economy, and the creation of a low-wage workforce performing low-skill but highly flexible episodic jobs, the legislature may want to address this stark dichotomy.”

Corley’s decision was the first ever by a federal judge on whether gig workers are employees, “so companies like Uber and Lyft will also be celebrating this win,” Seattle University associate law professor Charlotte Garden told the Los Angeles Times.

A lawyer for Lawson said he would appeal the ruling.

Lawson has made similar claims against Amazon, where he had worked as a delivery driver, in a case that is ongoing in federal court in Washington State.

Ethan Baron is a business reporter at The Mercury News, and a native of Silicon Valley before it was Silicon Valley. Baron has worked as a reporter, columnist, editor and photographer in newspapers and magazines for 25 years, covering business, politics, social issues, crime, the environment, outdoor sports, war and humanitarian crises.

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